The latest jobs report from the government shows the damage to the economy is widening.
The Labor Department says the August unemployment rate soared to a five-year high of 6.1 percent. Employers cut some 84,000 jobs, marking the eighth straight month of contraction in payrolls.
Also, with revisions, job losses in June and July were worse than previously thought. The economy lost 100,000 jobs in June and another 60,000 in July.
Factories cut some 61,000 jobs, retailers shed some 20,000 posts, while professional and business services lost 53,000 positions.
In a written statement, Labor Secretary Elaine Chao says the jobs report "confirms the seriousness of the challenges facing our economy."